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Why I'd buy Goldman Sachs
Wall Street banks have kicked off the earnings season with some bumper results… and today Goldman Sach’s is set to sing from the same song sheet.
Strong investment bank fees have already helped Citigroup, JPMorgan and Wells Fargo report expectation-beating earnings. Currently Goldman Sachs leads the investment banking league tables. Such a position means its fixed income fee revenues should even outstrip those reported by JPMorgan last week.
And the good news doesn’t end there. The outlook for Q3 is also strong. Peter Garnay explains that as the M&A market gathers pace, the bond market continues to see strong volumes and economic growth in Europe and the US picks up so the potential upside for Goldman Sachs is endless.
He notes, however, there is one risk factor to keep an eye on: if there is a sudden sharp rise in yield curves, there’s a chance profits could be hit if positions aren’t fully hedged.
01:12 minutes
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